Due to environmental concerns and the shortage of water in the northern part of Chile, some mining companies, such as BHP Billiton, have decided to supply their mine operations using desalination plants. In some cases, these companies outsource operational water supply through a BOOT (build – own – operate - transfer) contract, where a third-party oversees the design, construction, financing and operation of the water conveyance system, all the way from the desalination plant to the mine site within a certain period. This is the case of the Spence Mine (Spence Growth Options Project), where the water supply is desalinated water through a BOOT contract. CDM Smith has supported BHP on the identification and evaluation process of world-class joint ventures for the award of a BOOT contract.
The project includes a 23-million-gallon-per-day seawater reverse osmosis plant, marine works, a 95-mile-long desalinated water conveyance system, and a power supply system. The CDM Smith project team provided:
- Technical, commercial and financial support during the bidding process
- Bid forms development and Q&A rounds support
- Strategic, technical, commercial and financial support during the BOOT contract development
- Development of the proposal evaluation methodology
- Proposals evaluation
- Support during the negotiation and awarding process